By means of Justine Irish D. Table, Reporter
The information technology and business process management (IT-BPM) industry said it remains controversialfiThe outlook is negative, despite the threat of possible American protectionism under newly-elected President Donald J. Trump.
In a statement on Tuesday, the IT & Business Process Association of the Philippines (IBBAP) described the Philippines as a resilient outsourcing destination.
“The Philippine IT-BPM industry is built on the foundation of Philippine resilience and excellence,” said Jack Madrid, IBPAP president and CEO officer.
“New foreign policies and global movements challenge us, but they also force us to increase our capabilities,” he added.
The group focused on “geopolitical shifts and movements such as Mr. Trump’s potential protectionist policies, wars and conflicts, and their potential impact on the Philippine IT-BPM industry.”
According to Mr. Madrid, the IBPAP “continued to grow during (the fifirst Trump administration)” regardless of the rhetoric.”
Dominic Vincent D. Ligot, founder of Cirrolytix and IBPAP’s AI, technology and research consultant, said 70% of the industry group’s members are North American.
“This number comes from IBPAP, which represents virtually the entire industry,” he said in a Viber message.
Within the industry he said IT-BPM firms has North American clients such as Teleperformance, Concentrix, Alorica, Accenture and Sitel Group, while North American companies also have local operations including Wells Fargo, American Express, JP Morgan Chase and Bank of America.
Between 2003 and 2021, 395 U.S. companies invested $22.4 billion in the Philippines, of which 35%, or $7.8 billion, went to IT-BPM, the Center for Strategic and International Studies said in a report.
However, GlobalSource country analysts Diwa C. Guinigundo and Wilhelmina C. Mañalac said Mr. Trump’s “America First” protectionism is aimed at securing jobs for Americans, which could negatively impact the business process outsourcing (BPO) industry.
“The uncertainty of the Trump policy towards the business contracting sector would therefore be non-trivial effects on Philippine manufacturing growth and employment,” they added.
This year, IBPAP expects export turnover and a workforce of $38 billion and 1.82 million by the end of the year.
According to IBPAP’s roadmap, the sector is aiming for 2.5 million employeesffand revenues of $59 billion by 2028.
Asked for comment, Calixto V. Chikiamco, president of the Foundation for Economic Freedom, said it was too early to say whether Mr. Trump will impose protectionist measures on outsourcing services.
“So far, President Trump has only imposed tariffs on imports, not on outsourced services. So we don’t know yet, but maybe, given his ‘America First’ instinct,” Mr. Chikiamco said via Viber.
“So far he has focused on bringing manufacturing jobs back to America, but he may still target service sector jobs that have left the country for abroad,” he added.
Despite the positive outlook, Mr Madrid said the sector needs to consistently upskill its workforce in artificial intelligence, data analytics and cloud solutions.
“By consistently and urgently upskilling our workforce in emerging areas, we will ensure that the Philippines remains an indispensable partner in the global IT-BPM landscape,” he said.
According to IBPAP, global demand for IT BPM services continues to grow as companies remain dependent on outsourcing.
“Businesses rely on outsourcing to drive efficiency, scalability and innovation – needs that transcend political boundaries,” the industry group said.
“The Philippines is leading the way in meeting these demands, thanks to its highly qualified, adaptable and culturally attuned workforce,” it added.
“The future of the Philippine IT-BPM industry will not be dictated by external policies or global uncertainties. It is defined by the strength of our people, our adaptability and our unwavering commitment to delivering world-class services,” he added.